1. A binding price floor in a market is removed. Which of the following is likely to occur as a result? SELECT THE CORRECT ANSWER a. The market price will rise. b. The demand for the item will fall. c. The market price will fall. d. The supply of the item will rise. 2. In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia. Select the correct answer a. decrease Amazon sales b. decrease prices for local businesses c. decrease the number of consumers d. increase Amazon sales
1. A binding price floor in a market is removed. Which of the following is likely to occur as a result? SELECT THE CORRECT ANSWER a. The market price will rise. b. The demand for the item will fall. c. The market price will fall. d. The supply of the item will rise. 2. In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia. Select the correct answer a. decrease Amazon sales b. decrease prices for local businesses c. decrease the number of consumers d. increase Amazon sales
Chapter4: Markets In Action
Section: Chapter Questions
Problem 13SQ
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Question
1. A binding
SELECT THE CORRECT ANSWER
a. The market price will rise.
b. The demand for the item will fall.
c. The market price will fall.
d. The supply of the item will rise.
2. In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.
Select the correct answer
a. decrease Amazon sales
b. decrease prices for local businesses
c. decrease the number of consumers
d. increase Amazon sales
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